PANews reported on May 29 that according to Forbes, the inflation rate of Bitcoin after halving is now 75% lower than the current US inflation rate and 72% lower than the annual issuance of gold. After the Bitcoin halving in April, the block reward dropped from 6.25 Bitcoins to 3.125 Bitcoins, which had a significant impact on the issuance rate of cryptocurrencies. Each halving event reduces the supply of new Bitcoins, tightens market supply, and may increase asset value over time.
With approximately 450 bitcoins mined per day, bitcoin’s current inflation rate is around 0.84%, while the latest inflation data for the United States in May was 3.4%. The reduction in bitcoin’s inflation rate is an important milestone, as it is now even below the lower bound of gold’s annual inflation rate, which is between 1% and 3% per year. Gold mining issuance results in a 1% increase in supply, while recycled gold is also incorporated into its inflation rate, with an inflation rate of 9% in 2023, resulting in a net increase of 3% in the circulating supply of gold.
